international strategy operation

(a) Industry competition in the automotive industry

Questions:
With reference to appropriate theories, frameworks and concepts from Topic 2 (industry competition)…
1. Discuss why the ‘mass market’ segment of the auto industry is currently considered ‘unattractive’ in terms of its profit potential.
2. Explain why profitability is generally higher at the luxury and ultra-luxury end of the auto industry.
3. What challenges and barriers would a relative ‘newcomer’ – such as Hyundai – face in attempting to move ‘up market’ into the luxury or ultra-luxury end of the auto industry? What strategies could such firms adopt in attempting to overcome these challenges and barriers?